Mexican peso, USA News (Mexico City): The Mexican peso closed the month of October with a monthly depreciation of 4% against the US dollar, marking eight consecutive weeks of losses. According to data provided by the Bank of Mexico, the national currency ended the month at 18.80 units per dollar, compared to 18.08 units recorded at the close of September.
During the final week, the currency dropped 0.77%, while its accumulated depreciation from a low of 16.89 units registered on September 4 reached 11.32%. Janneth Quiroz, director of Economic, Foreign Exchange, and Stock Market Analysis at Monex Financial Group, explained to EFE that the depreciation is driven by both external and internal factors.
Key Factors Impacting the Currency
Among the elements mentioned were geopolitical uncertainty, tariff negotiations with the United States, and the reduction of the interest rate differential, which currently sits close to 250 basis points. The specialist noted that these conditions diminish the appeal of Mexican assets for international investors.
Gabriela Siller, director of Economic and Financial Analysis at Base Financial Group, warned that the depreciation could add 0.52 percentage points to inflation over the next twelve months. This effect is expected to concentrate primarily on goods containing imported components and will appear gradually.
Outlook for November
Quiroz anticipated that November could experience additional episodes of volatility, particularly ahead of the US elections scheduled for November 3 and ongoing trade negotiations. The exchange rate could approach the threshold of 19 pesos per dollar once again.
